FHFA Extends Refinance Program By One Year
Posted By thestatedtruth.com on March 2, 2010
This program has been a total failure at a radical cost to us the tax payers. FHFA has reviewed the current market situation and the state of mortgage insurance availability and has determined that the market conditions that necessitated the actions taken last year have not materially changed. Fannie, Freddie and FHA are broke. FHA is a part of HUD since 1965. FHA’s loses alone are expected to reach 100 billion if not already there. Fannie Mae and Freddie Mac are now government controlled entities GCE’s. What ever happened to the free market policy of letting the market rise or sink to its own levels? All the government is doing is prolonging the day of reckoning. Our future is “highl risk” until markets of all types reach levels that bring in buyers on free market merits not by government support. Things in the economy are likely to be tough and getting tougher until after the long term cycles bottom, most likely towards the end of the 2012 to 2014 time period…..just an opinion.   In the mean time, ebb and flow bounces are just that……bounces but not the bottom.  We can only hope that our government gets some sanity and learns 6’th grade arithmatic concerning the debt issues!
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                   The Stated Truth
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Tuesday, March 02, 2010
FHFA Extends Refinance Program
         by CalculatedRisk on 3/02/2010 08:41:00 AM
Press Release: FHFA Extends Refinance Program By One Year
Federal Housing Finance Agency Acting Director Ed DeMarco today announced the extension of the Home Affordable Refinance Program, (HARP), a refinancing program administered by Fannie Mae and Freddie Mac, to June 30, 2011. … The HARP program expands access to refinancing for qualified individuals and families whose homes have lost value. The program was set to expire on June 10 of this year.“FHFA has reviewed the current market situation and the state of mortgage insurance availability and has determined that the market conditions that necessitated the actions taken last year have not materially changed, said DeMarco. Accordingly, to support and promote market stability, and to encourage lenders and other mortgage market participants to fully adopt the HARP program, including the implementation of the October 2009 expansion of loan-to-value ratios (LTVs) to 125 percent, FHFA is authorizing the extension of HARP until June 30, 2011.In 2009, Fannie Mae and Freddie Mac purchased or guaranteed more than 4 million refinanced mortgages. Of this total, 190,180 were HARP refinances with LTVs between 80 percent and 125 percent.Â
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